Earnings Review and Free Research Report: US Foods Holdings’ Revenue Grew 6.1%, Beating Expectations

Research Desk Line-up: Core-Mark Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on US Foods Holding Corp. (NYSE: USFD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=USFD, following the Company’s announcement of its second quarter financial results on August 09, 2017. The leading food distributor met earnings expectations and also updated its guidance for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Food Wholesale industry. Pro-TD has currently selected Core-Mark Holding Company, Inc. (NASDAQ: CORE) for due-diligence and potential coverage as the Company announced on August 08, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Core-Mark when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on USFD; also brushing on CORE. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the thirteen weeks ended July 01, 2017, US Foods’ total case volume increased 3.6% on a y-o-y basis, of which 2.3% was organic growth, while independent restaurant case volume rose 4.7% on a y-o-y basis, out of which 3.7% was organic growth. The increase in total cases was attributed to growth with independent restaurants, healthcare, and hospitality customers, and select national chain business.

US Foods net sales totaled $6.16 billion in Q2 2017, reflecting growth of 6.1% compared to net sales of $5.81 billion in Q2 2016, driven by total case volume growth, product mix changes and year-over-year inflation in grocery, produce, poultry, and seafood. The Company noted that sales from acquisitions completed in the last 12 months increased total net sales by approximately 1.8%. US Foods’ revenue numbers topped analysts’ expectations of $6.00 billion.

During Q2 2017, US Foods’ gross profit came in at $1.05 billion, increasing 1.9% from gross profit of $4.77 billion in Q2 2016, primarily attributed to higher volume combined with margin expansion initiatives, partially offset by the y-o-y change in the Last-in, first-out (LIFO) inventory reserve. The Company’s gross profit as a percentage of net sales was 17.1% for the reported quarter. US Foods’ adjusted gross profit, which excludes the impact of LIFO, was $1.1 billion, a 5.6% increase on a y-o-y basis and adjusted gross profit as a percentage of net sales was 17.6%.

For Q2 2017, US Foods’ operating expenses were $928 million, down 0.9% from $936 million in Q2 2016, benefitting from the non-recurrence of the prior year $31 million contract termination fee with sponsors, lower restructuring charges due to the completion of several initiatives in 2016, and ongoing efforts to reduce operating expenses. The Company’s operating income surged 28.7% to $126 million for the reported quarter, from operating income of $98 million in the prior year’s same quarter.

US Foods’ net income was $65 million, or $0.29 per share, for Q2 2017 compared to net loss of $13 million, or $0.07 per diluted share, in Q2 2016. The Company’s adjusted diluted EPS was $0.37 for the reported quarter versus $0.44 per share in the year ago comparable period. US Foods’ earnings met Wall Street’s estimates of $0.37 per share.

Cash Flows and Capital Transactions

US Foods’ net cash provided by operating activities for H1 2017 was $368 million compared to $301 million in H1 2016, related to the Company’s growth in net income which was driven by improved business performance and reduced interest expense. US Foods’ cash capital expenditures totaled $108 million for H1 2017, an increase of $41 million from prior year, due to the timing of payments made for assets acquired late in Q4 FY16 and increased capital spending.

At the end of Q2 2017, US Foods’ net debt was $3.6 billion, a decrease of $172 million versus the year ago same period. The Company’s ratio of net debt to adjusted EBITDA was 3.5x at the end of the reported quarter, down from 4.0x in the same prior year’s corresponding period.

Outlook

For FY17, US Foods’ updated select elements of its guidance. The Company is forecasting net sales growth of 3%-5%, interest expense of $175 million-$180 million, cash taxes of $20 million-$25 million, and adjusted diluted EPS of $1.30-$1.40. All other elements of the Company’s guidance that had been provided during the Q4 FY16 earnings call on February 15, 2017, remain unchanged.

Stock Performance

At the closing bell, on Wednesday, August 30, 2017, US Foods’ stock rose 1.30%, ending the trading session at $27.30. A total volume of 1.07 million shares have exchanged hands. The Company’s stock price surged 12.86% in the previous twelve months. The stock is trading at a PE ratio of 20.39 and currently has a market cap of $6.05 billion.

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